Kamana Sewa Bikas Bank Issues a 15-day Public Notice Inviting Sealed Bids for the Auction of Mortgaged Properties and Vehicles

22nd June 2026, Kathmandu

Kamana Sewa Bikas Bank has officially issued a fifteen-day public notice regarding the auction of various mortgaged properties and vehicles held as collateral against outstanding loan facilities.

KSBBL Asset Auction Notice

The comprehensive legal notice, published on Asar 8, 2083 (June 22, 2026), indicates that multiple borrowers and guarantors have failed to settle their financial obligations despite receiving repeated prior communications and regulatory grace periods. Because the outstanding principal balances, accumulated interest, and late payment charges remain unpaid, the internal credit recovery department has launched the formal collateral liquidation process to protect institutional capital and comply with prevailing banking regulations.

Overview of the Collateral Auction Notice and Bid Submission Guidelines

The public announcement invites eligible individuals, corporate firms, and institutional organizations to actively participate in the structured bidding process.

• Issuing Financial Institution: Kamana Sewa Bikas Bank Limited (KSBBL)
• Notice Publication Date: Asar 8, 2083 (Corresponding to June 22, 2026)
• Mandatory Compliance Window: Fifteen days from the official date of publication
• Types of Collateral Listed: Real estate properties (land and buildings) and commercial or private vehicles
• Primary Central Location for Bid Management: Central Office, Gyaneshwor, Kathmandu, Nepal
• Governing Regulatory Framework: Bank and Financial Institutions Act, 2073 (BAFIA)
• Core Operational Objective: Minimizing non-performing loans and recovering stuck credit assets
• Bid Submission Requirements: Sealed bid documents containing specific financial offers and required deposits

Analyzing Credit Recovery Mechanisms and Legal Compliance in Nepalese Banking

The decision to auction off real estate and automotive collateral reflects the standard regulatory escalation path utilized by class-B development banks when managing chronic default scenarios.

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Before reaching this stage, the risk management team at Kamana Sewa Bikas Bank provided several opportunities for borrowers and third-party guarantors to regularize their accounts through restructuring or partial payments. Since these internal remedy windows closed without successful resolution, the bank exercised its legal rights under its credit policies and national laws. Moving forward with a competitive sealed-bid system ensures complete transparency, allowing the bank to fetch the fair market value required to offset the defaults.

Procurement Procedures and Next Steps for Interested Institutional Bidders

For real estate firms, vehicle dealers, and private investors looking to acquire these assets, understanding the logistical timeline is crucial for making valid submissions.

All official bid documents containing the precise descriptions, geographical locations, and minimum valuation benchmarks for each listed asset are available at the central office in Gyaneshwor. Applicants must complete their financial evaluations, prepare their sealed bids alongside the necessary earnest money deposit, and submit them before the fifteen-day expiration deadline. The institutional evaluation committee will subsequently open the bids and award the assets to the highest valid bidders in accordance with the provisions of the Bank and Financial Institutions Act, 2073.

For More: KSBBL Asset Auction Notice